Welcome to the forum.
You pretty much nailed it -- .32/20 Military & Police. That serial number puts it around 1914. Value depends on condition. If it is shootable, but loose and with not much finish left, it is a shooter grade gun worth perhaps $150-200. If it has a lot of the finish left and the action is tight, it could be up around $350-400.
I can't tell about the stocks from your description. They could be real ivory or fake ivory, or even franzite/plastic. Real ivory is worth something. Franzite is not.
If the gun has been renickeled, it is just shooter grade from a collector's point of view no matter how nice it looks. If the nickel is original and in good shape, the gun is worth more.
A quick test to narrow the possibilities: If the hammer and trigger on your friend's gun are nickeled, then it has been refinished. If they still show case coloring, no matter how drab (like the gun below), then the gun MAY still have its original finish. But it might also have been refinished in keeping with company standards, which is why the hammer and trigger could be OK and the rest of the gun went back to the tank.
I don't know what the i45/145 and 245 stuff is about. Maybe those are agency IDs rather than anything the factory put on the gun.
Here's a renickeled .32-20 from 1913 (serial number 54xxx) that I have. Your friend's gun probably looks like this. Action is great, bore and chambers bright. The refinish is not the best. I don't mean it is a failing finish, just that the prep work wasn't that sensitive.
Any chance you can post some pics?